Capital Construction Capital Construction - City of Edmonton
Capital Construction Capital Construction - City of Edmonton
Capital Construction Capital Construction - City of Edmonton
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<strong>Capital</strong> <strong>Construction</strong><br />
Mission<br />
“To consolidate the<br />
<strong>City</strong> <strong>of</strong> <strong>Edmonton</strong>’s<br />
capital project planning<br />
and management<br />
expertise, and to<br />
focus accountability<br />
for delivering capital<br />
projects on time and<br />
on budget.”<br />
Our Road Map<br />
Overview<br />
The <strong>Capital</strong> <strong>Construction</strong> Department was created in 2008 to ensure that the<br />
<strong>City</strong>’s road network, its LRT infrastructure, and its civic buildings are<br />
constructed efficiently, on-time, and within budget using world-recognized<br />
best practices in delivery, design, and construction methods.<br />
The Department brings together the <strong>City</strong>'s capital project expertise along with<br />
private sector partners such as engineering consultants, architects, and<br />
construction contractors to deliver best-value infrastructure for our citizens.<br />
The Department delivers the infrastructure necessary for the <strong>City</strong> to be<br />
successful in providing programs to citizens through:<br />
<br />
<br />
<br />
<br />
Buildings Design & <strong>Construction</strong><br />
LRT Design & <strong>Construction</strong><br />
LRT Expansion<br />
Roads Design & <strong>Construction</strong><br />
Major Services & Activities<br />
Buildings Design & <strong>Construction</strong><br />
LRT Design & <strong>Construction</strong><br />
<br />
<br />
<br />
<br />
Project planning for all civic<br />
buildings<br />
Contract management for the<br />
design, construction and renovation<br />
<strong>of</strong> <strong>City</strong> buildings<br />
Review and approval <strong>of</strong> civic<br />
building designs<br />
Coordination <strong>of</strong> construction activities<br />
across <strong>City</strong> departments<br />
<br />
Project management services for the<br />
planned South LRT Extension and<br />
Downtown to NAIT LRT projects, including:<br />
<br />
<br />
Identifying and evaluating project<br />
delivery strategies<br />
Coordinating construction with<br />
other <strong>City</strong> departments and utilities<br />
LRT Expansion<br />
Roads Design & <strong>Construction</strong><br />
<br />
<br />
Preliminary engineering, provide<br />
detailed design, and project<br />
manage the LRT extensions<br />
Identification <strong>of</strong> the most effective<br />
and efficient delivery methods<br />
for each leg <strong>of</strong> the system<br />
based on its own unique set <strong>of</strong><br />
challenges, including but not limited<br />
to P3s, design-builds, construction<br />
management and design-bid-build<br />
<br />
Design, contract administration and<br />
project management for:<br />
<br />
<br />
<br />
<br />
Road and bridge construction<br />
and rehabilitation<br />
Interchange construction<br />
Neighbourhood renewal and rehabilitation<br />
Facility construction for active<br />
transportation modes
<strong>Capital</strong> <strong>Construction</strong><br />
Strategic Road Map — Outcomes: <strong>Capital</strong> <strong>Construction</strong><br />
Department: Outputs<br />
Department: Immediate and<br />
Intermediate Outcomes<br />
Corporate:<br />
Ultimate Outcome<br />
•<br />
•<br />
New<br />
New<br />
& Rehabilitated<br />
Rehabilitated<br />
Civic<br />
Civic<br />
Buildings<br />
Buildings<br />
•<br />
•<br />
Asphalt<br />
Asphalt<br />
& Concrete<br />
Concrete<br />
are<br />
are<br />
recycled<br />
recycled<br />
on<br />
on<br />
road<br />
road<br />
reconstruction<br />
reconstruction<br />
and<br />
and<br />
LRT<br />
LRT<br />
projects<br />
projects<br />
Enhanced<br />
Enhanced<br />
Civic<br />
Civic<br />
Infrastructure<br />
Infrastructure<br />
delivered<br />
delivered<br />
•<br />
•<br />
Construct<br />
Construct<br />
active<br />
active<br />
transportation<br />
transportation<br />
facilities;<br />
facilities;<br />
bicycle<br />
bicycle<br />
paths,<br />
paths,<br />
walking<br />
walking<br />
trails<br />
trails<br />
•<br />
•<br />
Neighbourhood<br />
Neighbourhood<br />
Renewal-<br />
Renewalcondition<br />
condition<br />
<strong>of</strong><br />
<strong>of</strong><br />
sidewalks<br />
sidewalks<br />
and<br />
and<br />
roads<br />
roads<br />
improved<br />
improved<br />
•<br />
•<br />
SW<br />
SW<br />
Recreation<br />
Recreation<br />
Centre<br />
Centre<br />
open<br />
open<br />
•<br />
•<br />
North<br />
North<br />
Central<br />
Central<br />
Fieldhouse<br />
Fieldhouse<br />
open<br />
open<br />
Environmental<br />
Environmental<br />
impacts<br />
impacts<br />
from<br />
from<br />
<strong>City</strong><br />
<strong>City</strong><br />
operations<br />
operations<br />
are<br />
are<br />
reduced<br />
reduced<br />
<strong>City</strong><br />
<strong>City</strong><br />
facilities<br />
facilities<br />
built<br />
built<br />
in<br />
in<br />
a<br />
a<br />
timely<br />
timely<br />
manner<br />
manner<br />
that<br />
that<br />
meets<br />
meets<br />
the<br />
the<br />
needs<br />
needs<br />
<strong>of</strong><br />
<strong>of</strong><br />
citizens<br />
citizens<br />
Condition<br />
Condition<br />
<strong>of</strong><br />
<strong>of</strong><br />
neighbourhood<br />
neighbourhood<br />
infrastructure<br />
infrastructure<br />
is<br />
is<br />
improved<br />
improved<br />
New<br />
New<br />
civic<br />
civic<br />
infrastructure<br />
infrastructure<br />
promotes<br />
promotes<br />
intensification,<br />
intensification,<br />
design<br />
design<br />
excellence,<br />
excellence,<br />
a<br />
a<br />
range<br />
range<br />
<strong>of</strong><br />
<strong>of</strong><br />
community<br />
community<br />
needs<br />
needs<br />
Measures:<br />
% reduction in<br />
energy use<br />
resulting from<br />
upgrade<br />
% <strong>of</strong> LEED Silver<br />
Certified Buildings<br />
amount <strong>of</strong><br />
construction waste<br />
diverted from<br />
landfills<br />
Measures:<br />
Facilities<br />
constructed on-time;<br />
on budget<br />
active<br />
transportation<br />
facilities built ontime;<br />
on-budget<br />
Measures:<br />
Measured by<br />
results <strong>of</strong> citizen<br />
satisfaction surveys<br />
as each<br />
Neighbourhood is<br />
completed<br />
Measures:<br />
Built on-time;<br />
on budget<br />
The<br />
The<br />
impact<br />
impact<br />
<strong>of</strong><br />
<strong>of</strong><br />
<strong>City</strong><br />
<strong>City</strong><br />
operations<br />
operations<br />
on<br />
on<br />
air,<br />
air,<br />
land,<br />
land,<br />
and<br />
and<br />
water<br />
water<br />
systems<br />
systems<br />
is<br />
is<br />
minimized<br />
minimized<br />
Safe,<br />
Safe,<br />
clean<br />
clean<br />
and<br />
and<br />
welcoming<br />
welcoming<br />
<strong>City</strong><br />
<strong>City</strong><br />
Attractive,<br />
Attractive,<br />
compact<br />
compact<br />
physical<br />
physical<br />
design<br />
design<br />
with<br />
with<br />
diverse<br />
diverse<br />
neighbourhoods<br />
neighbourhoods<br />
and<br />
and<br />
public<br />
public<br />
open<br />
open<br />
spaces<br />
spaces<br />
Preserve Preserve & Sustain<br />
Sustain<br />
<strong>Edmonton</strong>’s <strong>Edmonton</strong>’s Environment<br />
Environment<br />
Improve Improve <strong>Edmonton</strong>’s<br />
<strong>Edmonton</strong>’s<br />
Livability<br />
Livability<br />
Transform Transform <strong>Edmonton</strong>’s<br />
<strong>Edmonton</strong>’s<br />
Urban Urban Form<br />
Form<br />
Shift Shift <strong>Edmonton</strong>’s<br />
<strong>Edmonton</strong>’s<br />
Transportation Transportation Mode<br />
Mode<br />
22<br />
33<br />
44<br />
1<br />
30 30 Year<br />
Vision<br />
New<br />
New<br />
LRT<br />
LRT<br />
infrastructure<br />
infrastructure<br />
delivered<br />
delivered<br />
The<br />
The<br />
<strong>City</strong><br />
<strong>City</strong><br />
has<br />
has<br />
an<br />
an<br />
efficient<br />
efficient<br />
and<br />
and<br />
effective<br />
effective<br />
bus<br />
bus<br />
& LRT<br />
LRT<br />
network<br />
network<br />
to<br />
to<br />
serve<br />
serve<br />
<strong>Edmonton</strong><br />
<strong>Edmonton</strong><br />
with<br />
with<br />
connections<br />
connections<br />
to<br />
to<br />
the<br />
the<br />
Region<br />
Region<br />
Measures:<br />
Using best<br />
practices in<br />
project<br />
management;<br />
deliver projects<br />
on-time & onbudget<br />
Transit<br />
Transit<br />
and<br />
and<br />
active<br />
active<br />
modes<br />
modes<br />
<strong>of</strong><br />
<strong>of</strong><br />
transportation<br />
transportation<br />
are<br />
are<br />
preferred<br />
preferred<br />
Ensure Ensure <strong>Edmonton</strong>’s<br />
<strong>Edmonton</strong>’s<br />
Financial Financial Sustainability<br />
Sustainability<br />
Diversify Diversify <strong>Edmonton</strong>’s<br />
<strong>Edmonton</strong>’s<br />
Economy<br />
Economy<br />
5<br />
6<br />
Enhanced<br />
Enhanced<br />
Transportation<br />
Transportation<br />
infrastructure<br />
infrastructure<br />
delivered<br />
delivered<br />
Goods<br />
Goods<br />
& Services<br />
Services<br />
vehicles<br />
vehicles<br />
have<br />
have<br />
excellent<br />
excellent<br />
access<br />
access<br />
to<br />
to<br />
rail,<br />
rail,<br />
airports<br />
airports<br />
& highways<br />
highways<br />
Measures:<br />
Built on-time;<br />
on budget<br />
People<br />
People<br />
and<br />
and<br />
goods<br />
goods<br />
move<br />
move<br />
efficiently<br />
efficiently<br />
through<br />
through<br />
the<br />
the<br />
<strong>City</strong><br />
<strong>City</strong><br />
Immediate and Intermediate Outcomes and Measures<br />
Outcome<br />
Measure<br />
1. Environmental impacts from <strong>City</strong> operations are reduced<br />
2. Active Transportation facilities (bike paths, walking trails) built in a timely<br />
manner that meets the needs <strong>of</strong> citizens<br />
● % reduction in energy use resulting from upgrade<br />
● % <strong>of</strong> LEED Silver Certified Buildings<br />
● Amount <strong>of</strong> construction waste diverted from landfills<br />
● Facilities constructed on time; on budget<br />
3. Conditions <strong>of</strong> neighbourhood infrastructure is improved ● Measured by results <strong>of</strong> citizen satisfaction surveys as each<br />
neighbourhood is completed<br />
4. New civic infrastructure promotes intensification, design excellence, a range <strong>of</strong><br />
community needs<br />
5. The <strong>City</strong> has an efficient and effective bus and LRT network to serve <strong>Edmonton</strong><br />
with connections to the region<br />
6. Goods and services vehicles have excellent access to rail, airports and<br />
highways<br />
● Built on time; on budget<br />
● Built on time; on budget<br />
● LRT track and facilities are built on time and on budget<br />
● Built on time and on budget
<strong>Capital</strong> <strong>Construction</strong><br />
Proposed 2010 Operating Budget<br />
The following is a roll-up <strong>of</strong> the proposed 2010 Operating Budget for the <strong>Capital</strong> <strong>Construction</strong> Department. Each <strong>of</strong> the<br />
five major services will have their budgets broken out in the following pages, along with explanatory notes to provide<br />
greater understanding about the costs and recoveries associated with the services provided.<br />
<strong>Capital</strong> <strong>Construction</strong> Department - Program Summary<br />
Revenue Service & %<br />
2008 2009 & Cost Budget Service 2010 Change 2011<br />
Actual Budget Impacts* Review Needs Budget '09-'10 Forecast<br />
Revenues<br />
User fees, Fines, Permits, etc. $ 9 $ 371 $ (162) $ - $ - $ 209 (43.7) $ 214<br />
Transfer from Reserves** 523 330 (330) - - - (100.0) -<br />
Total Revenues & Transfers 532 701 (492) - - 209 (70.2) 214<br />
Expenditures<br />
Buildings Design & <strong>Construction</strong> 1,529 1,487 (280) (103) 300 1,404 (5.6) 1,756<br />
LRT Design & <strong>Construction</strong> 20 - 299 - - 299 - 317<br />
LRT Expansion 65 691 270 (73) - 888 28.4 936<br />
Roads Design & <strong>Construction</strong> - 2,133 (324) (111) - 1,698 (20.4) 1,781<br />
Department Administration*** 256 88 94 - - 182 106.8 143<br />
Total Expenditures & Transfers 1,870 4,399 59 (287) 300 4,471 1.6 4,933<br />
Net Operating Requirement $ 1,338 $ 3,698 $ 551 $ (287) $ 300 $ 4,262 15 $ 4,719<br />
Full-time Equivalents **** 61.0 147.2 1.8 - 4.0 153.0 162.0<br />
* Cost Impacts include: inflation on personnel and non-personnel costs, annualization, adjustments based on current<br />
performance. Revenue Impacts relate to rate and volume changes.<br />
**<br />
($330K) - Energy Conservation Reserve - expires December 31, 2009, with any balance transferred to the Financial<br />
Stabilization Reserve (FSR).<br />
*** In order to more fully account for administration charges on capital projects, the costs ($1.9 M) <strong>of</strong> space rental and<br />
dedicated resources from other departments have been transferred to the <strong>Capital</strong> <strong>Construction</strong> Department. The<br />
Department is maximizing the allowable charges to capital projects in order to minimize the impact on the tax levy.<br />
**** The Roads Design and <strong>Construction</strong> Branch joined the <strong>Capital</strong> <strong>Construction</strong> Department in 2009.<br />
Roads<br />
38%<br />
Where the Budget will be spent<br />
Department<br />
Administration<br />
4%<br />
Buildings Design &<br />
<strong>Construction</strong><br />
31%<br />
Funding by Source<br />
User fees, Fines,<br />
Permits, etc.<br />
5%<br />
LRT Expansion<br />
20%<br />
LRT Design &<br />
<strong>Construction</strong><br />
7%<br />
Tax Levy &<br />
Corporate<br />
Revenue<br />
95%
<strong>Capital</strong> <strong>Construction</strong><br />
Buildings Design & <strong>Construction</strong><br />
Responsibility<br />
The Buildings Design & <strong>Construction</strong> Branch provides<br />
planning and project management services to other<br />
<strong>City</strong> Departments for the design, construction and<br />
renovation <strong>of</strong> <strong>City</strong> buildings, and for contaminated site<br />
remediation. The branch is the <strong>City</strong>’s representative for<br />
building projects to ensure that the citizens receive a<br />
quality product for good value.<br />
The <strong>City</strong>’s technical and project management expertise<br />
for buildings are located within this branch. Some <strong>of</strong><br />
the major responsibilities <strong>of</strong> the Branch include:<br />
<br />
<br />
<br />
<br />
<br />
Managing project planning activities with<br />
client departments and stakeholders<br />
Contract management for the design and<br />
construction <strong>of</strong> <strong>City</strong> Buildings<br />
Managing complex and technical building<br />
rehabilitation projects<br />
Managing energy assessments and<br />
upgrades to <strong>City</strong> owned facilities<br />
Providing architectural and engineering<br />
technical support to other <strong>City</strong> departments<br />
Operational Variables<br />
The volume <strong>of</strong> work demanded <strong>of</strong> the Buildings Design<br />
& <strong>Construction</strong> branch is mainly dependant upon the<br />
following:<br />
<br />
<br />
<br />
The number <strong>of</strong> buildings and facilities that<br />
require planning activities based on client<br />
departments need;<br />
The number <strong>of</strong> new building and facility<br />
projects that client departments receive<br />
funding for;<br />
The amount <strong>of</strong> funding approved for<br />
rehabilitation <strong>of</strong> city buildings and facilities;<br />
and<br />
The amount <strong>of</strong> capital funding spent on building<br />
projects has increased significantly over the past five<br />
years from $48 million in 2005 to a projected $195<br />
million in 2009. In addition, the branch must manage<br />
some building maintenance projects that are funded<br />
from client department operating budgets.<br />
It is anticipated that the growth in the number <strong>of</strong> new<br />
buildings will not increase as quickly as what has been<br />
observed over the past few years, but the number <strong>of</strong><br />
rehabilitation projects will increase as the current<br />
infrastructure continues to age and deteriorate.<br />
Current Services<br />
The branch provides services to other city departments,<br />
the <strong>Edmonton</strong> Public Library and the <strong>Edmonton</strong> Police<br />
Service. It is currently managing the design and<br />
construction <strong>of</strong> 43 new buildings and 150 rehabilitation<br />
projects. For the 2009-2011 capital budget cycle, the<br />
branch will be managing $684 million worth <strong>of</strong> capital<br />
projects.<br />
The significant projects related to new buildings<br />
includes 4 multi-purpose recreation centres (Southwest,<br />
North Central, Clareview and Meadows), North Central<br />
Field House, Southwest Transit Garage, North Branch<br />
Library, Ellerslie Fire Station, and the Southwest<br />
Division Police Station.<br />
In addition to managing larger rehabilitation projects<br />
such as the Jasper Place library branch renewal,<br />
Highlands library branch renewal, and Mobile<br />
Equipment Services Heavy Repair & Equipment<br />
Facility, the branch is currently managing 147 smaller<br />
rehabilitation projects at various locations across the<br />
city.<br />
The branch is also managing energy assessments <strong>of</strong><br />
10 city facilities and the implementation <strong>of</strong> 13 energy<br />
upgrades in 2009. The results <strong>of</strong> the assessments will<br />
be used to identify potential capital energy upgrade<br />
projects that would reduce energy consumption and<br />
green house gas emissions.<br />
<br />
The number <strong>of</strong> requests received from<br />
client departments for technical support.
<strong>Capital</strong> <strong>Construction</strong><br />
Buildings Design & <strong>Construction</strong><br />
Major Service Objectives<br />
The branch continually strives to improve its efficiency<br />
and effectiveness in the provision <strong>of</strong> services. One<br />
major initiative currently underway is having branch staff<br />
undertake standardized project management training.<br />
Not only does this initiative align with the <strong>City</strong> Auditor’s<br />
recommendation for project management training, but it<br />
adds a common set <strong>of</strong> tools to project managers’ tool<br />
boxes for consistent use on projects across the branch.<br />
Other initiatives include refining existing processes to<br />
align with the <strong>Capital</strong> <strong>Construction</strong> department,<br />
enhancing relationships with external consultants and<br />
client departments, and working with other internal<br />
departments to increase process efficiencies.<br />
Issues and Challenges<br />
The branch is currently facing two major challenges.<br />
First is the difficulty in hiring experienced staff, while<br />
managing the loss <strong>of</strong> seasoned veterans due to<br />
retirements. Part <strong>of</strong> the strategy in managing this issue<br />
will be an attempt to retain experienced staff on a part<br />
time basis after retirement, however, other options will<br />
need to be explored as more <strong>of</strong> the staff attains<br />
retirement eligibility.<br />
The second challenge is the depletion <strong>of</strong> reserve<br />
funding that has been set aside by Council in 2006 for<br />
building energy assessments. This funding ends on<br />
December 31, 2009. Since 2004, the branch has<br />
performed energy assessments on various city facilities<br />
for the purposes <strong>of</strong> identifying energy upgrade projects<br />
to reduce energy consumption and green house gas<br />
emissions. As a result <strong>of</strong> these assessments,<br />
approximately 33 energy upgrade projects have been<br />
implemented on various facilities. The estimated annual<br />
reduction <strong>of</strong> green house gas emissions due to these<br />
projects is 24 million kilograms <strong>of</strong> carbon dioxide. A<br />
funding request for $300,000 annually to continue with<br />
building energy assessments has been submitted as<br />
part <strong>of</strong> the 2010 Operating Budget process. The energy<br />
assessments will be discontinued if the funding request<br />
is not approved.
<strong>Capital</strong> <strong>Construction</strong><br />
Buildings Design & <strong>Construction</strong><br />
Current Service Level<br />
Current (2009) Service Level Key Resource Requirement Capacity <strong>of</strong> Service Benefits <strong>of</strong> Service<br />
Manage $684 million worth <strong>of</strong> building capital<br />
projects between 2009 and 2011. Major<br />
projects include:<br />
• BDC currently utilizes 57 FTEs<br />
at a cost <strong>of</strong> $6.1 million.<br />
• Since 2005, the branch is<br />
managing a large increase ($<br />
value has tripled) in the volume<br />
and complexity <strong>of</strong> projects.<br />
• Centralized management for<br />
project planning, design, and<br />
construction <strong>of</strong> building projects<br />
allows for the application <strong>of</strong> best<br />
practices.<br />
• 4 new multi-purpose recreation centres<br />
• 4 new fire stations<br />
• The majority <strong>of</strong> materials,<br />
equipment, and contract services<br />
are directly funded by capital<br />
projects.<br />
• The project costs managed<br />
per employee has increased<br />
from $1.42 million each in 2005<br />
to $2.2 million in 2009 (dollar<br />
amounts have been adjusted<br />
for cost escalation).<br />
• The branch is able to commit to<br />
delivering accurate cost estimates,<br />
and appropriate delivery methods that<br />
provide Council-approved<br />
infrastructure on-time and on-budget.<br />
• 2 new libraries and 2 branch renewals<br />
• 3 new transit centres<br />
• Private sector resources such<br />
as architects, construction<br />
managers, and environmental<br />
consultants are used to assess,<br />
design, and manage various<br />
projects including energy<br />
assessments.<br />
• Additional funding is<br />
required to continue performing<br />
building energy assessments.<br />
• Preserve & sustain <strong>Edmonton</strong>’s<br />
environment by ensuring a quality<br />
and sustainable product is produced<br />
at a good value.<br />
• New division police station<br />
• Approximately 80% <strong>of</strong> program<br />
resources are charged to capital<br />
projects.<br />
• Contribute to reduction in building<br />
energy consumption and greenhouse<br />
gas emissions in civic buildings.<br />
• New Eco Station<br />
• Various rehabilitation projects across the city<br />
Manage building energy assessments.
<strong>Capital</strong> <strong>Construction</strong><br />
Buildings Design & <strong>Construction</strong><br />
Strategic Initiatives<br />
10 Year Strategic Goal /<br />
3 Year Priority Goal<br />
Initiative<br />
Outcome<br />
Immediate & Intermediate<br />
Ultimate<br />
1. Preserve and Sustain<br />
<strong>Edmonton</strong>’s Environment<br />
– Increase and broaden<br />
advancement towards<br />
zero waste<br />
– New and rehabilitated<br />
civic buildings<br />
– Environmental impacts<br />
from <strong>City</strong> operations are<br />
reduced<br />
– The impact <strong>of</strong> <strong>City</strong><br />
operations on air, land, and<br />
water systems is minimized<br />
– reduce greenhouse gas<br />
emission<br />
– improve air, water & soil<br />
quality<br />
2. Transform <strong>Edmonton</strong>’s urban<br />
form<br />
– SW Recreation Centre<br />
open<br />
– North Central Field house<br />
open<br />
– New civic infrastructure<br />
promotes intensification,<br />
design excellence, a range<br />
<strong>of</strong> community needs<br />
– Attractive, compact physical<br />
design with diverse<br />
neighbourhoods and public<br />
open spaces<br />
3. Improve <strong>Edmonton</strong>’s<br />
Livability<br />
– New civic buildings<br />
– <strong>City</strong> facilities built in a<br />
timely manner that meets<br />
the needs <strong>of</strong> citizens<br />
– Safe, clean and welcoming<br />
<strong>City</strong><br />
2010 Budget Impact<br />
Base<br />
None - Strategic initiatives are included in the 2010 Budget<br />
Incremental<br />
None - There are no incremental budget requirements in 2010 for strategic initiatives
<strong>Capital</strong> <strong>Construction</strong><br />
Buildings Design & <strong>Construction</strong><br />
Proposed 2010 Operating Budget<br />
<strong>Capital</strong> <strong>Construction</strong> Department - Buildings Design & <strong>Construction</strong><br />
Revenue Service & %<br />
2008 2009 & Cost Budget Service 2010 Change 2011<br />
Notes Actual Budget Impacts* Review Needs Budget '09-'10 Forecast<br />
Revenue & Transfers<br />
User fees, Fines, Permits, etc. $ - $ - $ - $ - $ - $ - - $ -<br />
1 Transfer from Reserves 523 330 (330) - - - (100.0) -<br />
Total Revenue & Transfers 523 330 (330) - - - (100.0) -<br />
Expenditure & Transfers<br />
Personnel 3,621 6,088 210 - - 6,297 3.4 6,704<br />
Materials, Goods & Supplies 121 75 67 - - 142 89.3 145<br />
3 External Services 3,095 695 (312) - 300 683 (1.7) 690<br />
4 Intra-municipal Services 134 106 794 - - 900 749.1 (145)<br />
Other Charges 98 78 225 - - 303 288.5 309<br />
Subtotal 7,069 7,042 984 - 300 8,326 18.2 7,703<br />
5 Intra-municipal Recoveries (5,540) (5,555) (1,264) (103) - (6,922) 24.6 (5,947)<br />
Total Expenditure & Transfers 1,529 1,487 (280) (103) 300 1,404 (5.6) 1,756<br />
Net Operating Requirement $ 1,006 $ 1,157 $ 50 $ (103) $ 300 $ 1,404 21.3 $ 1,756<br />
Full-time Equivalents 44.0 57.0 - - - 57.0 61.0<br />
* Cost Impacts include: inflation on personnel and non-personnel costs, annualization, adjustments based on current<br />
performance. Revenue Impacts relate to rate and volume changes.
<strong>Capital</strong> <strong>Construction</strong><br />
Buildings Design & <strong>Construction</strong><br />
Budget Changes for 2010 ($000)<br />
Revenue & Cost Impacts on 2009 Services<br />
Revenue Changes<br />
$ - Volume changes<br />
- Rate changes<br />
(330) Transfers from Reseves<br />
(330) Total Revenues<br />
Cost Changes<br />
295 Inflation - personnel<br />
(111) Inflation - recoveries<br />
13 Inflation - non-personnel<br />
794 Intra-municipal Services (Space rent, departmental overhead, monthly parking)<br />
(1,264) Intra-municipal Recoveries<br />
(7) Other Organizational & Operational Cost Changes<br />
(280) Total Cost Changes<br />
50 Net Operating Requirement<br />
Service & Budget Review<br />
(103) Two building facility project <strong>of</strong>ficers and one planning technician<br />
(103) Net Operating Requirement<br />
Service Needs<br />
300 Energy Audit<br />
$<br />
-<br />
300 Net Operating Requirement<br />
Impact on Full-time Equivalents<br />
0.0<br />
0.0<br />
0.0 Total Full-time Equivalent Changes
<strong>Capital</strong> <strong>Construction</strong><br />
Buildings Design & <strong>Construction</strong><br />
Notes<br />
1. Transfer from Reserve<br />
Reflects expiration <strong>of</strong> $330,000 reserve funding for building energy assessments.<br />
2. Personnel<br />
Increase from 2009 to 2010 is due to personnel wage and benefit contract settlements.<br />
3. External Services<br />
Includes $300,000 for building energy assessements that were previously funded from a reserve that will<br />
expire on December 31, 2009.<br />
4. Intra-municipal Services<br />
Increase to intra-municipal services are mainly generated from space rent and departmental<br />
overhead charges to branches and monthly parking charges.<br />
5. Intra-municipal Recoveries<br />
Recoveries from capital projects for personnel and branch overhead.
<strong>Capital</strong> <strong>Construction</strong><br />
LRT Design & <strong>Construction</strong><br />
Responsibility<br />
The LRT Design & <strong>Construction</strong> Branch is responsible<br />
for efficiently and effectively delivering LRT capital<br />
projects for the Transportation Department. The work <strong>of</strong><br />
this Branch is guided by <strong>City</strong> Council Bylaws and<br />
Policies, and Administrative Directives. LRT plans are<br />
incorporated in <strong>Edmonton</strong>’s Transportation Master Plan<br />
(The Way We Move) established as a requirement <strong>of</strong><br />
the Province <strong>of</strong> Alberta’s <strong>City</strong> Transportation Act.<br />
Implementation <strong>of</strong> capital projects must meet all<br />
applicable provincial and federal regulations, and terms<br />
<strong>of</strong> agreements for funding from other levels <strong>of</strong><br />
government.<br />
Current Services<br />
Project Management for design and construction,<br />
includes determining delivery methods, and<br />
coordination with other <strong>City</strong> departments and utilities<br />
for:<br />
<br />
South LRT extension from Health Sciences Station<br />
to Century Park Station – budget $675 million.<br />
Scheduled opening April, 2010.<br />
<br />
North LRT extension from Churchill Station to NAIT<br />
– budget $825 million (pending funding from other<br />
orders <strong>of</strong> Government). Design Engineering to be<br />
completed in Fall, 2010.<br />
LRT station platform extensions at Health Sciences,<br />
McKernan/Belgravia, South Campus, Southgate and<br />
Century Park – budget $15 million. Scheduled to be<br />
completed by March, 2011 (requirement <strong>of</strong> Federal<br />
Infrastructure Stimulus Program).<br />
Operation Variables<br />
Funding is approved for the LRT extension from Health<br />
Sciences to Century Park and resources are available<br />
within the branch and externally to successfully<br />
manage the project. Following completion <strong>of</strong> the<br />
majority <strong>of</strong> the construction in 2009 and opening the<br />
extension for service in 2010, existing internal<br />
resources will be assigned to the North LRT extension<br />
from Churchill station to NAIT project. The Design<br />
Engineering Phase for the North LRT extension will<br />
continue through 2010, with construction activity to start<br />
pending approval <strong>of</strong> funding.<br />
Providing advice concerning LRT construction to the<br />
Transportation and Planning and Development<br />
departments, and stakeholders during planning phases.
<strong>Capital</strong> <strong>Construction</strong><br />
LRT Design & <strong>Construction</strong><br />
Major Service Objectives<br />
Implement a system <strong>of</strong> defined project<br />
management best practices, cost estimating,<br />
training, planning and engineering standards and<br />
monitoring and sign-<strong>of</strong>f<br />
Issues and Challenges<br />
Funding for the construction phase <strong>of</strong> the North LRT<br />
extension from Churchill to NAIT is subject to receiving<br />
Provincial and/or Federal Government support.<br />
Commitments from either level <strong>of</strong> government has not<br />
been forthcoming and will likely delay the planned<br />
service implementation in early 2014 if authority to<br />
issue notices to proceed with construction is not in<br />
place by January, 2010.<br />
Current Service Level<br />
Current (2009) Service Level Key Resource Requirement Capacity <strong>of</strong> Service Benefits <strong>of</strong> Service<br />
South LRT<br />
• Complete construction and<br />
commission <strong>of</strong> extension to U <strong>of</strong><br />
A South Campus by April 23,<br />
2009.<br />
• Complete 90% <strong>of</strong> construction<br />
to Century Park in 2009 to<br />
prepare for scheduled opening<br />
in April 2010.<br />
• LRT Design & <strong>Construction</strong><br />
currently utilizes 13 FTEs at a<br />
cost <strong>of</strong> $1.4 million.<br />
• Materials, equipment, and<br />
contract services are directly<br />
funded by the SLRT and NLRT<br />
capital projects.<br />
• Existing resources are sufficient to<br />
maintain the current service level<br />
because <strong>of</strong> the high reliance on<br />
outside services such as consultant<br />
designs and contracted project<br />
management.<br />
• Additional FTEs would be required<br />
to manage an increase in<br />
construction activity.<br />
• The <strong>City</strong> has an efficient and effective<br />
LRT network that will contribute to<br />
shifting <strong>Edmonton</strong>’s transportation<br />
mode.<br />
• Transform <strong>Edmonton</strong>’s urban form by<br />
delivering the essential infrastructure<br />
needed to achieve transit-oriented<br />
design.<br />
North LRT<br />
• Complete preliminary<br />
engineering in 2009. Develop<br />
project delivery plan. Continue<br />
acquisition and complete<br />
construction <strong>of</strong> tunnel under<br />
Qualico/Epcor Tower.<br />
• Approximately 95% <strong>of</strong><br />
program resources are charged<br />
to capital projects.<br />
• Transit and active modes <strong>of</strong><br />
transportation become a viable and<br />
competitive alternative to private<br />
passenger vehicles.
<strong>Capital</strong> <strong>Construction</strong><br />
LRT Design & <strong>Construction</strong><br />
Strategic Initiatives<br />
10 Year Strategic Goal /<br />
3 Year Priority Goal<br />
Initiative<br />
Outcome<br />
1. Preserve and Sustain <strong>Edmonton</strong>’s<br />
Environment<br />
Asphalt and concrete are<br />
recycled on road<br />
reconstruction and LRT<br />
projects<br />
Immediate &<br />
Intermediate<br />
Ultimate<br />
Environmental impacts<br />
from <strong>City</strong> operations are<br />
reduced<br />
The impact <strong>of</strong> <strong>City</strong><br />
operations on air, land, and<br />
water systems is minimized<br />
2010 Budget Impact<br />
Base<br />
None - Strategic initiatives are included in the 2010 Budget<br />
Incremental<br />
None - There are no incremental budget requirements in 2010 for strategic initiatives
<strong>Capital</strong> <strong>Construction</strong><br />
LRT Design & <strong>Construction</strong><br />
Proposed 2010 Operating Budget<br />
<strong>Capital</strong> <strong>Construction</strong> Department - LRT Design & <strong>Construction</strong><br />
Revenue Service & %<br />
2008 2009 & Cost Budget Service 2010 Change 2011<br />
Notes Actual Budget Impacts* Review Needs Budget '09-'10 Forecast<br />
Revenue & Transfers<br />
1 User fees, Fines, Permits, etc. $ - $ - $ 209 $ - $ - $ 209 - $ 214<br />
Total Revenue & Transfers - - 209 - - 209 - 214<br />
Expenditure & Transfers<br />
Personnel 289 1,421 150 - - 1,571 10.6 1,649<br />
Materials, Goods & Supplies - 11 - - - 11 - 12<br />
3 Intra-municipal Services - - 1,122 - - 1,122 - 982<br />
Subtotal 289 1,432 1,272 - - 2,704 88.8 2,643<br />
4 Intra-municipal Recoveries (269) (1,432) (973) - - (2,405) 67.9 (2,326)<br />
Total Expenditure & Transfers 20 - 299 - - 299 - 317<br />
Net Operating Requirement $ 20 $ - $ 90 $ - $ - $ 90 - $ 103<br />
Full-time Equivalents 13.0 13.0 - - - 13.0 13.0<br />
* Cost Impacts include: inflation on personnel and non-personnel costs, annualization, adjustments based on current<br />
performance. Revenue Impacts relate to rate and volume changes.
<strong>Capital</strong> <strong>Construction</strong><br />
LRT Design & <strong>Construction</strong><br />
Budget Changes for 2010 ($000)<br />
Revenue & Cost Impacts on 2009 Services<br />
Revenue Changes<br />
$ 209 Volume changes: NLRT land expropriations <strong>of</strong>fset by expenses<br />
- Rate changes<br />
- Transfers from Reserves<br />
209 Total Revenues<br />
Cost Changes<br />
131 Inflation - personnel<br />
1 Inflation - non-personnel<br />
(29) Inflation - recoveries<br />
19 Other personnel expenses<br />
1,122 Other organizational and operational cost changes<br />
(945) Intra-municipal recoveries<br />
299 Total Cost Changes<br />
90 Net Operating Requirement<br />
Service & Budget Review<br />
-<br />
- Net Operating Requirement<br />
Service Needs<br />
$<br />
-<br />
-<br />
-<br />
-<br />
-<br />
- Net Operating Requirement<br />
Impact on Full-time Equivalents<br />
0.0<br />
0.0<br />
0.0 Total Full-time Equivalent Changes
<strong>Capital</strong> <strong>Construction</strong><br />
LRT Design & <strong>Construction</strong><br />
Notes<br />
1. Revenue<br />
The external revenue relates to NLRT expropriated land. The revenues <strong>of</strong>fset costs<br />
associated with maintaining these properties.<br />
2. Personnel<br />
The escalation in personnel costs for the 2009 budget over the 2008 actual ($1,132) reflects<br />
contract settlements, benefits, increments/merit and total rewards.<br />
3. Intra-municipal Services<br />
The intra-municipal services are mostly generated from shared services, space rent and<br />
departmental overhead charges, NLRT land <strong>of</strong>fset, and monthly parking charges.<br />
4. Intra-municipal Recoveries<br />
Branch personnel, non-personnel, and attributable administration overhead costs are partially<br />
recovered from capital projects.<br />
The recovery percentage is dependant <strong>of</strong> time and effort dedicated to capital activity.<br />
The remainder (approx 5%) is not recovered from capital and is funded by the tax levy.
<strong>Capital</strong> <strong>Construction</strong><br />
LRT Expansion<br />
Responsibility<br />
The Branch is responsible for the design and<br />
construction <strong>of</strong> future LRT lines, including:<br />
<br />
Northeast (Clareview to Industrial<br />
Heartland),<br />
Operational Variables<br />
The costs associated for each extension can vary<br />
significantly between $200 million to $1.2 billion. The<br />
overall cost to expand the entire network is estimated at<br />
$5.3 billion<br />
<br />
<br />
<br />
Northwest (NAIT to St. Albert),<br />
Southeast (Downtown to Millwoods),<br />
South (Century Park to Heritage Valley);<br />
and<br />
In order to expand the LRT network, a sustainable<br />
funding source needs to be identified from all three<br />
levels <strong>of</strong> Government; Federal, Provincial and<br />
Municipal.<br />
<br />
West (Downtown to Lewis Estates)<br />
The ultimate goal is to efficiently and effectively deliver<br />
these projects for the Transportation Department, as<br />
well as look for opportunities to advance these projects<br />
as quickly as possible, ensuring projects are<br />
accomplished on time and on budget, using sound<br />
engineering practices and policies established by the<br />
<strong>City</strong>. This will be achieved by determining the optimum<br />
delivery method for each extension by analyzing the<br />
risks and appropriate business cases.<br />
Responsible for:<br />
Preliminary and Detail Design<br />
<br />
<strong>Construction</strong> Management<br />
Current Services<br />
<strong>Capital</strong> Project<br />
Life-Cycle<br />
Northwest (NAIT to St. Albert)<br />
Strategic Planning<br />
Concept Planning<br />
West (Downtown to Lewis Estates)<br />
Southeast (Downtown to Millwoods)<br />
South (Century Park to Ellerslie Road) – Preliminary Engineering<br />
Design<br />
Northeast (Claireview to Gorman) – Preliminary Engineering<br />
Implementation<br />
(<strong>Construction</strong>)<br />
Strategic Planning Section Involvement<br />
Drivers for Work:<br />
This aligns with Council’s vision and 10 year strategic<br />
plan.<br />
The Transportation Master Plan, approved on<br />
September 14, 2009, shifts the emphasis away from<br />
roads to transit, in particular LRT and active modes <strong>of</strong><br />
transportation.<br />
The Transportation Systems Bylaw currently includes<br />
the South LRT Extension from Century Park to Heritage<br />
Valley, and the Northeast Extension from Clareview to<br />
Gorman. It is anticipated that the Bylaw will be<br />
amended to also include the Southeast Extension from<br />
Downtown to Millwoods and the West Extension from<br />
Downtown to Lewis Estates Transit Centre in the fourth<br />
quarter <strong>of</strong> 2009.<br />
LRT Design & <strong>Construction</strong> / LRT Expansion Involvement<br />
The proposed expansion <strong>of</strong> <strong>Edmonton</strong>’s LRT system is<br />
approximately 50 km and is estimated to cost $5.3<br />
billion.<br />
Preliminary engineering is underway for the Northeast<br />
Extension from Clareview to Gorman and the South<br />
Extension from Century Park to Ellerslie Road. Both<br />
Engineering assignments are expected to be completed<br />
in the spring <strong>of</strong> 2010.<br />
The preliminary and detailed design for the Heritage<br />
Valley Park & Ride is underway. <strong>Construction</strong> is<br />
anticipated to begin in the spring <strong>of</strong> 2010 and be<br />
completed by March 31, 2011. Total estimated cost is<br />
$15 million.
<strong>Capital</strong> <strong>Construction</strong><br />
LRT Expansion<br />
Major Service Objectives<br />
Develop and implement a Project Execution Manual<br />
that follows the recommendations <strong>of</strong> the Auditor’s<br />
report on 23 Avenue Interchange:<br />
<br />
<br />
<br />
Define project management best practices,<br />
Identify engineering deliverables during<br />
different phases and disciplines,<br />
Standardize cost estimating deliverables<br />
during different phases <strong>of</strong> engineering,<br />
Issues and Challenges<br />
Funding for the overall system requires a sustainable<br />
commitment from all three levels <strong>of</strong> government.<br />
Consultants and contactors are being engaged, and are<br />
shifting their focus to Transit and more specifically Light<br />
Rail Transit. In order to take advantage <strong>of</strong> the current<br />
market conditions, prompt action is required to secure a<br />
commitment.<br />
<br />
<br />
Formalize the design review and sign <strong>of</strong>f<br />
process; and<br />
Identify training requirements.<br />
<br />
<br />
<br />
<br />
Review different project delivery models for the LRT.<br />
Network with consultants and contractors<br />
throughout North America, making them aware <strong>of</strong><br />
our expansion plans.<br />
Develop Public Involvement Plans for each project.<br />
Develop and implement a department level<br />
Occupational Health & Safety program based on<br />
audit recommendations and best practices.<br />
<br />
Obtain ISO 14001 Environmental Management<br />
System Registration.<br />
Current Service Level<br />
Current (2009) Service Level Key Resource Requirement Capacity <strong>of</strong> Service Benefits <strong>of</strong> Service<br />
South LRT Extension<br />
• Complete the preliminary<br />
design <strong>of</strong> the South LRT<br />
Extension from Century Park<br />
to Ellerslie Station.<br />
• Complete the design and<br />
construction fo the Heritage<br />
Valley park and ride facility.<br />
• LRT Expansion currently<br />
utilizes 7 FTEs at a cost <strong>of</strong><br />
$0.6 million.<br />
• Materials, equipment, and<br />
contract services are minimal,<br />
consisting <strong>of</strong> <strong>of</strong>fice equipment<br />
& furnishings plus external<br />
planning contracts and public<br />
consultation.<br />
• Existing resources are<br />
sufficient to maintain the<br />
current service level.<br />
• Additional FTEs would be<br />
required to accommodate<br />
additional work.<br />
• Alignment with the <strong>City</strong>’s longterm<br />
vision <strong>of</strong> shifting<br />
transportation modes.<br />
• Development is undertaken<br />
in a way that is consistent with<br />
public values and expectations.<br />
Northeast LRT Extension<br />
• Complete the preliminary<br />
design <strong>of</strong> the northeast LRT<br />
extension from Clareview to<br />
Gorman.<br />
• Program resources are<br />
ineligible to be charged to<br />
capital projects until a funding<br />
source is secured for the new<br />
LRT corridors.<br />
• There is in excess <strong>of</strong> $5<br />
Billion in LRT work which<br />
remains to be undertaken to<br />
complete the network.<br />
• Contribute to transforming<br />
<strong>Edmonton</strong>’s urban form by<br />
enabling compact physical<br />
design.
<strong>Capital</strong> <strong>Construction</strong><br />
LRT Expansion<br />
Strategic Initiatives<br />
10 Year Strategic Goal /<br />
3 Year Priority Goal Initiative<br />
Outcome<br />
1. Shift <strong>Edmonton</strong>’s<br />
Transportation Mode<br />
- The <strong>City</strong> has an efficient<br />
and effective bus and LRT<br />
network to serve <strong>Edmonton</strong><br />
with connection to the region<br />
Immediate &<br />
Intermediate<br />
Ultimate<br />
- To contribute to increased<br />
transit ridership by opening the<br />
South Campus phase on time<br />
in 2009 and the Century Park<br />
phase on time in 2010<br />
- Open Century Park<br />
LRT<br />
- Complete platform<br />
extensions for 5-car<br />
trains<br />
Transit and active<br />
modes <strong>of</strong><br />
transportation are<br />
preferred<br />
- Open Park’n’ride<br />
sites (Heritage Valley,<br />
Eau Claire and Lewis<br />
Estates)<br />
- Complete Northwest<br />
Extension from<br />
Churchill to MacEwan<br />
- Complete LRT design<br />
and tender packages<br />
for southeast, west<br />
and northeast<br />
2010 Budget Impact<br />
Base<br />
None - Strategic initiatives are included in the 2010 Budget<br />
Incremental<br />
None - There are no incremental budget requirements in 2010 for strategic<br />
initiatives
<strong>Capital</strong> <strong>Construction</strong><br />
LRT Expansion<br />
Proposed 2010 Operating Budget<br />
<strong>Capital</strong> <strong>Construction</strong> Department - LRT Expansion<br />
Revenue Service & %<br />
2008 2009 & Cost Budget Service 2010 Change 2011<br />
Notes Actual Budget Impacts* Review Needs Budget '09-'10 Forecast<br />
Revenue & Transfers<br />
User fees, Fines, Permits, etc. $ 9 $ - $ - $ - $ - $ - - $ -<br />
Total Revenue & Transfers 9 - - - - - - -<br />
Expenditure & Transfers<br />
Personnel 50 548 255 - - 804 46.6 852<br />
Materials, Goods & Supplies 1 47 1 - - 47 1.3 48<br />
External Services 4 52 1 - - 53 2.0 54<br />
Intra-municipal Services 9 5 12 - 17 228.4 (59)<br />
Other Charges 1 39 1 - - 40 2.0 41<br />
Subtotal 65 691 270 - - 961 39.0 936<br />
2 Intra-municipal Recoveries - - - (73) - (73) - -<br />
Total Expenditure & Transfers 65 691 270 (73) - 888 28.4 936<br />
Net Operating Requirement $ 56 $ 691 $ 270 $ (73) $ - $ 888 28.4 $ 936<br />
Full-time Equivalents - 5.2 1.8 - - 7.0 7.0<br />
* Cost Impacts include: inflation on personnel and non-personnel costs, annualization, adjustments based on current<br />
performance. Revenue Impacts relate to rate and volume changes.
<strong>Capital</strong> <strong>Construction</strong><br />
LRT Expansion<br />
Budget Changes for 2010 ($000)<br />
Revenue & Cost Impacts on 2009 Services<br />
Revenue Changes<br />
$ - Volume changes<br />
- Rate changes<br />
- Transfers from Reserves<br />
- Total Revenues<br />
Cost Changes<br />
82 Inflation - personnel<br />
2 Inflation - non-personnel<br />
211 Annualization <strong>of</strong> 2009 Services -- 1.8 Full-time Equivalent Positions<br />
(25) Other organizational and operational cost changes<br />
270 Total Cost Changes<br />
270 Net Operating Requirement<br />
Service & Budget Review<br />
(73) 1 PM Engineer Position<br />
(73) Net Operating Requirement<br />
Service Needs<br />
$<br />
-<br />
-<br />
-<br />
-<br />
-<br />
- Net Operating Requirement<br />
Impact on Full-time Equivalents<br />
1.8 Annualization <strong>of</strong> 2009 Services<br />
0.0<br />
1.8 Total Full-time Equivalent Changes
<strong>Capital</strong> <strong>Construction</strong><br />
LRT Expansion<br />
Notes<br />
1. Personnel<br />
The increase in personnel costs for the 2009 budget over the 2008 actual ($498) reflects<br />
the reorganization <strong>of</strong> personnel in the <strong>Capital</strong> <strong>Construction</strong> Department. It also includes<br />
contract settlements, increments/merit, total rewards, and annualization<br />
($211/1.8 FTEs).<br />
2. Intra-municipal Recoveries<br />
Funding for one Project Manager / Engineer Position was transferred from Operating to <strong>Capital</strong><br />
due to the impact from the Service & Budget Review.<br />
LRT Expansion is funded 100% by tax levy.
<strong>Capital</strong> <strong>Construction</strong><br />
Roads Design & <strong>Construction</strong><br />
Responsibility<br />
The Roads Design & <strong>Construction</strong> Branch provides<br />
effective design (drawings and plans), project<br />
management (cost estimates, resident engineering and<br />
inspection, cost/budget monitoring and control), and<br />
contract administration (contract documents, tendering,<br />
warranty) services for roadway facilities and related<br />
infrastructure.<br />
Current Services<br />
For 2009, the overall budget was $404 million. The<br />
<strong>Capital</strong> Roads program was split, with 41% committed<br />
to rehabilitation (the majority <strong>of</strong> the work on<br />
neighbourhood rehabilitation) and 59% <strong>of</strong> the program<br />
dedicated to growth.<br />
Neighbourhood Renewal projects includes:<br />
<br />
Parkdale - Second year <strong>of</strong> a two-year project – two<br />
contracts<br />
Meadowlark Park - First year <strong>of</strong> a long term (3+3)<br />
contract<br />
Lendrum Place - First year <strong>of</strong> a long term (3+3)<br />
contract<br />
Arterial Rehabilitation includes:<br />
Operational Variables<br />
<br />
Client budget matched to capacity to complete the<br />
work<br />
Project management<br />
<br />
Compare effectiveness with<br />
<br />
<br />
Other cities (ie: Ottawa)<br />
Large <strong>Construction</strong> Companies<br />
111 Avenue - from 109 Street to 124 Street<br />
119 Street - from 108 Avenue to 111 Avenue<br />
118 Avenue - Streetscape from 87 Street to 92<br />
Street, and 42 Street to 50 Street<br />
Yellowhead Trail SMA - from 107 Street to 121<br />
Street<br />
107 Avenue - from 156 Street to 163 Street<br />
Riverbend Road - from 40 Avenue to Reeves<br />
Gate<br />
<br />
<br />
<br />
Ability to take advantage <strong>of</strong> long-term<br />
contracts and price stability<br />
Methods <strong>of</strong> alternate project delivery<br />
23 Avenue—Gateway Boulevard Interchange<br />
Project Review (Sept. 2008) recommendations<br />
Major Growth projects include:<br />
Fox Drive - Widening from Belgravia to Campbell<br />
Bridge<br />
<br />
137 Avenue CN Overpass at 140 Street<br />
<br />
<br />
<br />
142 Street - from 137 Avenue to 153 Avenue<br />
Continued work on Whitemud Drive 53 Avenue<br />
to149 Street<br />
Continued work on 23 Avenue / Gateway<br />
Boulevard Interchange
<strong>Capital</strong> <strong>Construction</strong><br />
Roads Design & <strong>Construction</strong><br />
Major Service Objectives:<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
Work with Materials Management to develop a<br />
consultant selection process responsive to TILMA<br />
Guidelines and the needs <strong>of</strong> the Branch<br />
Performance evaluations for consultant and<br />
contractor services<br />
Meet or exceed client needs and objectives<br />
Develop & implement a department level<br />
occupational health and safety program based on<br />
audit recommendations and best practices<br />
Review and upgrade staff occupational health and<br />
safety training<br />
Review & upgrade the Contractor Management<br />
Program<br />
Maintain ISO 14001 environmental management<br />
system registration<br />
Implement the recommendations <strong>of</strong> the Auditor’s<br />
report on the 23rd Avenue interchange<br />
<br />
Develop and implement a system <strong>of</strong> defined project<br />
management best practices, cost estimating,<br />
training, planning and engineering standards and<br />
monitoring and sign-<strong>of</strong>f<br />
Issues and Challenges<br />
<br />
<br />
<br />
<br />
<br />
Project Management training for all staff<br />
Adequate resourcing and resource allocation to<br />
complete projects<br />
Review and assign Prime Contractor status<br />
appropriately<br />
Improve cost estimating accuracy<br />
Risk management<br />
Current Service Level<br />
Current (2009) Service Level Key Resource Requirement Capacity <strong>of</strong> Service Benefits <strong>of</strong> Service<br />
• Complete the 23 Ave<br />
interchange and Quesnell<br />
Bridge projects.<br />
• Enter into multi-year<br />
contracts for neighbourhood<br />
renewal. 3-year contracts<br />
with a 3-year option.<br />
• Provide construction for the<br />
Great Neighbourhoods<br />
Program.<br />
• Road work in 19 new<br />
contracts in over 100<br />
locations.<br />
• Roads Design & <strong>Construction</strong><br />
currently utilizes 68 FTEs at a cost<br />
<strong>of</strong> $6.7 million, delivering $404<br />
million worth <strong>of</strong> capital projects in<br />
2009.<br />
• The majority <strong>of</strong> materials,<br />
equipment, and contract services<br />
are directly funded by Roadways<br />
capital projects.<br />
• Approximately 80% <strong>of</strong> program<br />
resources are charged to capital<br />
projects.<br />
• Additional FTEs are required<br />
to manage the Approved<br />
2009-2011 <strong>Capital</strong> Roads<br />
Program.<br />
• To add to this, 4 new capitalfunded<br />
positions are included<br />
with this Budget submission.<br />
• Design work allocation is 80%<br />
delivered by engineering<br />
consultants and 20% by inhouse<br />
resources.<br />
• Contribute to <strong>Edmonton</strong>’s<br />
sustainability and livability<br />
through renewal <strong>of</strong> existing<br />
infrastructure, including<br />
neighbourhoods.<br />
• People and goods move safely<br />
and efficiently through the<br />
<strong>City</strong>.<br />
• Active transportation facilities<br />
(bicycle paths, multi-use trails)<br />
meet the needs and<br />
expectations <strong>of</strong> citizens and<br />
contribute to shifting<br />
<strong>Edmonton</strong>’s transportation<br />
mode.
<strong>Capital</strong> <strong>Construction</strong><br />
Roads Design & <strong>Construction</strong><br />
Strategic Initiatives<br />
10 Year Strategic Goal /<br />
3 Year Priority Goal<br />
Initiative<br />
Outcome<br />
1. Improved <strong>Edmonton</strong>’s<br />
Liveability<br />
- Construct Active Transportation (bicycle paths,<br />
walking trails) facilities<br />
Immediate & Intermediate<br />
Ultimate<br />
- Neighbourhood renewal: improved conditions<br />
<strong>of</strong> sidewalks and roads<br />
Condition <strong>of</strong> neighbourhood<br />
infrastructure is improved<br />
Safe, clean and<br />
welcoming city<br />
- Open 23 Avenue interchange<br />
- 137 Ave grade/rail separation open (140 St. –<br />
156 St.)<br />
- Open Quesnell Bridge<br />
Goods and service vehicles<br />
have excellent access to rail,<br />
airports and highways<br />
People and goods move<br />
efficiently through the city<br />
2. Shift Transportation<br />
Mode<br />
- Complete connectors to new Anthony Henday<br />
Drive interchanges<br />
- Open Whitemud Drive/17 Street interchange<br />
2010 Budget Impact<br />
Base<br />
None - Strategic initiatives are included in the 2010 Budget<br />
Incremental<br />
None - There are no incremental budget requirements in 2010 for strategic initiatives
<strong>Capital</strong> <strong>Construction</strong><br />
Roads Design & <strong>Construction</strong><br />
Proposed 2010 Operating Budget<br />
<strong>Capital</strong> <strong>Construction</strong> Department - Roadways Design & <strong>Construction</strong><br />
Revenue Service & %<br />
2008 2009 & Cost Budget Service 2010 Change 2011<br />
Notes Actual Budget Impacts* Review Needs Budget '09-'10 Forecast<br />
Revenue & Transfers<br />
1 User fees, Fines, Permits, etc. $ - $ 371 $ (371) $ - $ - $ - (100.0) $ -<br />
Total Revenue & Transfers - 371 (371) - - - (100.0) -<br />
Expenditure & Transfers<br />
Personnel - 6,735 1,352 - 8,087 20.1 8,546<br />
Materials, Goods & Supplies - 296 12 - - 308 4.1 314<br />
3 External Services - 480 (344) - - 136 (71.7) 139<br />
Fleet Services - 37 (7) - - 30 (18.9) 31<br />
4 Intra-municipal Services - 108 1,185 - - 1,293 1,097.2 1,159<br />
Other Charges - 100 185 - - 285 185.0 288<br />
Subtotal - 7,756 2,383 - - 10,139 30.7 10,477<br />
5 Intra-municipal Recoveries - (5,623) (2,707) (111) (8,441) 50.1 (8,696)<br />
Total Expenditure & Transfers - 2,133 (324) (111) - 1,698 (20.4) 1,781<br />
Net Operating Requirement $ - $ 1,762 $ 47 $ (111) $ - $ 1,698 (4) $ 1,781<br />
Full-time Equivalents - 68.0 - - 4.0 72.0 76.0<br />
* Cost Impacts include: inflation on personnel and non-personnel costs, annualization, adjustments based on current<br />
performance. Revenue Impacts relate to rate and volume changes.<br />
** Roadways Design & <strong>Construction</strong> Branch joined the <strong>Capital</strong> <strong>Construction</strong> Department on January 1st, 2009.<br />
Actual 2008 costs are included in Transportation's submission.
<strong>Capital</strong> <strong>Construction</strong><br />
Roads Design & <strong>Construction</strong><br />
Budget Changes for 2010 ($000)<br />
Revenue & Cost Impacts on 2009 Services<br />
Revenue Changes<br />
$ (371) Volume Change - ATCO contract work - now being done in-house by ATCO<br />
- Rate changes<br />
- Transfers from Reseves<br />
(371) Total Revenues<br />
Cost Changes<br />
501 Inflation - Personnel<br />
12 Inflation - Non-Personnel<br />
(115) Inflation - Recoveries<br />
1,185 Intra-municipal Services (Space rent, departmental overhead and monthly parking)<br />
(2,707) Intra-municipal Recoveries<br />
800 Other Organizational & Operational Cost Changes<br />
(324) Total Cost Changes<br />
47 Net Operating Requirement<br />
Service & Budget Review<br />
(111) Impact <strong>of</strong> moving 3 Project Manager positions from Operating to <strong>Capital</strong><br />
-<br />
(111) Net Operating Requirement<br />
Service Needs<br />
- 2 Design Engineers & 2 <strong>Construction</strong> Project Managers; funded through <strong>Capital</strong><br />
$ - Net Operating Requirement<br />
Impact on Full-time Equivalents<br />
4.0 Addition <strong>of</strong> 2 Design Engineers & 2 <strong>Construction</strong> Project Managers<br />
0.0<br />
4.0 Total Full-time Equivalent Changes
<strong>Capital</strong> <strong>Construction</strong><br />
Roads Design & <strong>Construction</strong><br />
Notes<br />
1. External Revenue<br />
External revenue generated from services provided to ATCO are no longer required in 2010.<br />
ATCO is currently managing grind and overlay work for the gas main renewal program in-house.<br />
2. Personnel<br />
The increase in personnel costs for the 2010 budget over the 2009 budget reflects the<br />
reorganization <strong>of</strong> personnel in the <strong>Capital</strong> <strong>Construction</strong> Department and the increases from<br />
contract settlements and benefits for 2009. It also includes the addition <strong>of</strong> 4 new positions,<br />
2 Design Engineers and 2 Project Managers, to the RDC Branch.<br />
3. External Services<br />
The decrease <strong>of</strong> external service costs for the 2010 budget from the 2009 budget reflects the<br />
elimination <strong>of</strong> services provided to ATCO. ATCO has decided to manage the service in-house,<br />
therefore no revenue will be generated and the <strong>of</strong>fseting contract work account no longer needs<br />
to be budgeted.<br />
4. Intra-municipal Services<br />
The increase to intra-municipal services is mainly attributable to space rent and departmental<br />
overhead charges ($1,003) and monthly parking charges.<br />
5. Intra-municipal Recoveries<br />
Branch personnel, non-personnel and attributable administration overhead costs are<br />
partially recovered from capital projects.<br />
The recovery percentage is dependant on time and effort dedicated to capital activity. The<br />
remainder (approx 20%) is not recoverable and is funded by the tax levy.<br />
It also includes the impact from the Service & Budget Review <strong>of</strong> moving 3 Project<br />
Manager positions from Operating to <strong>Capital</strong>.
<strong>Capital</strong> <strong>Construction</strong><br />
Department Administration<br />
Proposed 2010 Operating Budget<br />
<strong>Capital</strong> <strong>Construction</strong> Department - Department Adminstration<br />
Revenue Service & %<br />
2008 2009 & Cost Budget Service 2010 Change 2011<br />
Notes Actual Budget Impacts* Review Needs Budget '09-'10 Forecast<br />
Revenue & Transfers<br />
User fees, Fines, Permits, etc. $ - $ - $ - $ - $ - $ - - $ -<br />
Total Revenue & Transfers - - - - - - - -<br />
Expenditure & Transfers<br />
Personnel 245 521 32 - - 553 6.1 586<br />
Materials, Goods & Supplies 5 47 (5) - - 42 (10.6) 42<br />
2 External Services - 69 11 - - 80 15.9 82<br />
3 Intra-municipal Services - 5 2,539 - - 2,544 50,780.0 2,082<br />
Other Charges 6 33 (2) - - 31 (6.1) 31<br />
Subtotal 256 675 2,575 - - 3,250 381.5 2,823<br />
4 Intra-municipal Recoveries - (588) (2,481) - - (3,069) 421.9 (2,635)<br />
Total Expenditure & Transfers 256 87 94 - - 181 108.0 188<br />
Net Operating Requirement 256 87 94 - - 181 108.0 188<br />
Full-time Equivalents 4.0 4.0 - - - 4.0 5.0<br />
* Cost Impacts include: inflation on personnel and non-personnel costs, annualization, adjustments based on current<br />
performance. Revenue Impacts relate to rate and volume changes.
<strong>Capital</strong> <strong>Construction</strong><br />
Department Administration<br />
Budget Changes for 2010 ($000)<br />
Revenue & Cost Impacts on 2009 Services<br />
Revenue Changes<br />
- Volume changes<br />
- Rate changes<br />
- Transfers from Reserves<br />
- Total Revenues<br />
Cost Changes<br />
38 Inflation - Personnel<br />
3 Inflation - Non-Personnel<br />
(12) Inflation - Recoveries<br />
(15) Absorbed Personnel Cost Increases<br />
2,539 Intra-municipal External Costs (Space rent, monthly parking, shared services)<br />
(2,481) Intra-municipal Recoveries<br />
22 Other organizational and operational cost changes<br />
94 Total Cost Changes<br />
94 Net Operating Requirement<br />
Service & Budget Review<br />
-<br />
- Net Operating Requirement<br />
Service Needs<br />
Impact <strong>of</strong> <strong>Capital</strong><br />
-<br />
Service & Budget Review<br />
-<br />
-<br />
- Net Operating Requirement<br />
Impact on Full-time Equivalents<br />
0.0<br />
0.0<br />
0.0 Total Full-time Equivalent Changes
<strong>Capital</strong> <strong>Construction</strong><br />
Department Administration<br />
Notes<br />
1. Personnel<br />
The increase in personnel costs for the 2009 budget over the 2008 actual ($276) reflects<br />
the reorganization <strong>of</strong> personnel in the <strong>Capital</strong> <strong>Construction</strong> Department. It also includes<br />
an increase to union wages and benefits for 2009.<br />
2. External Services<br />
The addition <strong>of</strong> external service costs for the 2009 budget reflects an increase <strong>of</strong><br />
construction projects being completed by the <strong>City</strong>. Consultants have been used to help<br />
guide the <strong>City</strong>, and to give their expert knowledge, in the construction <strong>of</strong> such major<br />
developments as the 23 Avenue Overpass and the expansion <strong>of</strong> the SLRT System.<br />
3. Intra-municipal Services<br />
The intra-municipal services are mostly generated from charges for space rental occupied<br />
by <strong>Capital</strong> <strong>Construction</strong> Department staff ($1.7M). It also includes monthly parking charges,<br />
and partial reimbursement <strong>of</strong> personnel costs for a Web Coordinator, OH&S resource,<br />
and finance resources.<br />
4. Intra-municipal Recoveries<br />
Personnel, non-personnel and attributable administration overhead costs are partially<br />
recovered from capital projects.<br />
The recovery percentage is dependant on time and effort dedicated to capital activity. The<br />
remainder (approx 20%) is not recoverable and is funded by the tax levy.
<strong>Capital</strong> <strong>Construction</strong><br />
Approved 2009-2011 <strong>Capital</strong> Budget<br />
The following is a summary <strong>of</strong> the Approved <strong>Capital</strong> Budgets. Included is a brief description <strong>of</strong> their progress to August<br />
2009 for information purposes.<br />
3-Year<br />
2009 2010 2011 Budget<br />
Budget Budget Budget Total<br />
Total Program <strong>Capital</strong> Budget $ 155,308 $ 184,787 $ 43,771 $ 383,866<br />
Progress on Significant <strong>Capital</strong> Projects<br />
Southwest Community Recreation Centre & Arenas<br />
The Southwest Community Recreation Centre & Arenas is<br />
located within the Leger District Park Site at the northeast<br />
corner <strong>of</strong> Terwillegar Drive and 23 Avenue in Southwest<br />
<strong>Edmonton</strong>. The programs within the multi-purpose<br />
recreation centre includes aquatics, a fitness area, a flexihall,<br />
multi-purpose spaces, and a child minding area.<br />
These programs will be integrated with a social heart. The<br />
arenas program includes four NHL sized ice sheets and<br />
seating for approximately 1,000. <strong>Construction</strong> <strong>of</strong> this multipurpose<br />
recreation centre began in July 2008 and<br />
continues on schedule to open in Fall 2010.<br />
Southwest Transit Garage<br />
This project is the construction <strong>of</strong> a new garage that will<br />
provide space for the storage, fueling, washing and<br />
maintenance <strong>of</strong> buses, as well as space for bus<br />
administrative operations to support 400 operators. It<br />
is located north <strong>of</strong> Ellerslie Road and east <strong>of</strong> 156<br />
Street. The garage will be approximately 313,000<br />
square feet and will accommodate 250 buses.<br />
<strong>Construction</strong> completion is scheduled for December<br />
2009.<br />
Operating Impact <strong>of</strong> <strong>Capital</strong> Projects<br />
There is no impact to <strong>Capital</strong> <strong>Construction</strong> Department’s operating program
<strong>Capital</strong> <strong>Construction</strong><br />
Service Needs Funded Within 3%<br />
Energy Assessments - Buildings Design & <strong>Construction</strong><br />
Description<br />
To perform energy assessments on <strong>City</strong> owned facilities to identify opportunities for capital energy upgrades. The energy<br />
assessments are currently funded from a reserve that will expire at the end <strong>of</strong> 2009, and a new funding source is required to<br />
continue performing energy assessments to help reduce overall utility consumption from<br />
<strong>City</strong> operations.<br />
There is no change to service - the existing service provided from 2007-2009 would cease in absence <strong>of</strong> this funding.<br />
Justification<br />
The energy assessments are required in advance <strong>of</strong> subsequent capital energy efficiency upgrades, which serves to achieve<br />
one or more <strong>of</strong> the following:<br />
· Reduce water consumption (in city operations);<br />
· Increase use <strong>of</strong> renewable energy (in city operations);<br />
· Reduce greenhouse gas emissions (in city operations);<br />
· Improve air, water and soil quality (in city operations);<br />
· Reduce gas and electricity consumption (in city operations);<br />
· Perform pilot studies to test new energy efficient technologies;<br />
Without the ability to conduct energy assessments, potential opportunities to improve energy efficiency and reduce the <strong>City</strong>'s<br />
carbon footprint will be foregone. This would impact the <strong>City</strong>'s ability to deliver on one <strong>of</strong> Council's key 10 year strategic goals:<br />
to preserve and sustain <strong>Edmonton</strong>'s environment.<br />
Links to Strategic Goals & Departmental Outcomes<br />
Goal #1 <strong>of</strong> The Way Ahead - "Preserve & Sustain <strong>Edmonton</strong>'s Environment".<br />
incremental 2010 2011 2012<br />
($000)<br />
Exp Rev Net FTEs Exp Rev Net FTEs Exp Rev Net FTEs<br />
New Budget<br />
Annualization<br />
Total<br />
300 300 - -<br />
- - -<br />
300 - 300 - - - - - - - - -
<strong>Capital</strong> <strong>Construction</strong><br />
Service Needs Funded Within 3%<br />
Growth <strong>of</strong> Existing Services - Roads Design & <strong>Construction</strong><br />
Description<br />
Growth Requirements: 2 Design Engineers & 2 <strong>Construction</strong> Project Managers for 2010 & 2011.<br />
Justification<br />
Without these positions there is inadequate staff to deliver the 2009-2011 <strong>Capital</strong> Roads Program (which will double by 2011 to<br />
$118m.) Such programs as the Neighbourhood Renewal Program (improving conditions <strong>of</strong> sidewalks and roads) as well as<br />
Streetscape Projects like 118 Avenue, 108 Street and Jasper Place Revitalization would be affected.<br />
Links to Strategic Goals & Departmental Outcomes<br />
The <strong>City</strong> has the capacity to deliver the strategic plan: communities are complete -- strong, safe, and welcoming <strong>City</strong> --<br />
ultimately improving <strong>Edmonton</strong>'s Liveability.<br />
incremental 2010 2011 2012<br />
($000)<br />
Exp Rev Net FTEs Exp Rev Net FTEs Exp Rev Net FTEs<br />
New Budget<br />
Internal Recovery<br />
Annualization<br />
Total<br />
552 552 4.0 - 4.0 -<br />
(552) (552) - -<br />
- - - 4.0 - - - 4.0 - - - -